Mainland rechargeable battery maker BYD hopes to supply batteries to Toshiba and Panasonic as the Japanese firms quit the battery manufacturing business. The firm said it was in preliminary talks with the Japanese giants to supply batteries for handsets and notebook computers. The company has budgeted 200 million yuan for the second half of this year to expand production at its Shanghai and Shenzhen plants. Chairman Wang Chuanfu said BYD aimed to become the world's largest rechargeable battery maker by 2006. The company is also diversifying into a wider range of mobile-phone components, earmarking 250 million yuan in the second half for manufacturing of LCD screens, plastic parts and key pads. Expanded sales to Motorola and Nokia helped boost BYD's net profit by 46.06 per cent year on year to 475.37 million yuan in the first half. Turnover rose 87.47 per cent to 2.78 billion yuan. Meanwhile, the company's car manufacturing business posted a loss of nine million yuan on turnover of 294 million yuan in the first half.